L&T Q1 Results: Net profit grows nearly 12%, EBITDA margin steady; infra giant bags Rs 70,936 crore orders
Infrastructure conglomerate Larsen & Toubro (L&T) reported a nearly 12 per cent increase in its consolidated net profit to Rs 2,785.7 crore for the quarter ended June 30. Its revenue grew 15.1 per cent to Rs 55,119.8 crore. L&T shares have rewarded investors with a 35 per cent return over the past 1 year.
Construction major Larsen & Toubro (L&T) on Wednesday reported an 11.7 per cent year-on-year jump in its consolidated net profit to Rs 2,785.7 crore for the quarter ended June 30, missing analysts' expectations. Its revenue grew 15.1 per cent to Rs 55,119.8 crore, according to a regulatory filing.
According to Zee Business research, L&T was estimated to register a net profit of Rs 2,832 crore and revenue of Rs 52,584 crore for the first quarter of the current financial year.
“We have achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe. Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology-driven new-age businesses," said SN Subrahmanyan, Chairman and Managing Director, L&T.
"The Financial Services portfolio has achieved a remarkable transformation into Retail Finance with improved profitability. To enhance our presence in the Semiconductor sector, we have recently entered into a share purchase agreement with SiliConch Systems, a Bengaluru-based chip design company," said Subrahmanyan.
L&T's EBITDA margin, a measure of operating profitability, remained unchanged from the year-ago period, at 10.2 per cent, in line with Street expectations. Zee Business analysts had estimated the construction giant's margin to remain at the same level.
L&T said that domestic economic activity has remained resilient with manufacturing activity continuing to gain ground on the back of strengthening domestic demand.
"The service sector maintained its buoyancy as evident from available high frequency indicators, while private consumption is recovering, with steady discretionary spending in urban areas. Revival in rural demand is getting a fillip from improving farm sector activity," L&T said.
With an expected above-normal southwest monsoon, kharif production is likely to get a boost and reservoir levels likely to be replenished, but inflation continues to require close monitoring by the policymakers, the conglomerate added.
L&T Order Book
L&T said it received orders to the tune of Rs 70,936 crore at the group level during the June quarter, marking year-on-yaer growth of 8 per cent aided by the strong momentum in the Middle East.
The group's consolidated order book stood at Rs 4,90,881 crore, as of June 30, 2024, up 19 per cent on a year-on-year basis with the share of international orders at 38 per cent, according to the company.
L&T Shares
As of July 24, the L&T stock has delivered a 35 per cent return, outperforming a 24 per cent gain in the headline Nifty50 index.
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